Files in Companyweb are Opening Read-Only After SBS 2008 UR2

[Today's post comes to us courtesy of the Rod White, Chris Puckett, Damian Leibaschoff, and Justin Crosby ]

We have discovered an issue with SBS 2008 UR2, that will cause documents opened from http://companyweb to be in read-only mode in your browser (i.e. Word/Excel/etc. is not launched).  You may also notice that certain elements missing from document menu on the site.  These include:

• Open in Microsoft Office <application name>
• Upload Multiple documents
• Send to
• Options that explicitly refer to a client-side Office application (Excel, Word, PowerPoint, etc.)

To fix this issue:

1. Open SharePoint 3.0 Central Administration.
2. On the Central Administration home page, click Application Management .
3. On the Application Management page, in the Application Security section, click Authentication providers .
4. On the Authentication Providers section, click on Default (or relevant) zone .
5. Under Client Integration, change option to Enable Client Integration to Yes and click Save.